How much Should I invest to Create Rs 25 Lakh in Six Years?

I am 21 years old. I just started my career. I want to have nearly Rs 25-30 lakh when I turn 27. I am ready to take moderate to high risk. How should I plan my investment?–Ritesh Joshi

You do not have much time to achieve your goal. You would have to invest a large amount every month to achieve it. For example, if you want to create a corpus of Rs 25 lakh in five years, you must invest around Rs 30,300 every month for the next five years. We have assumed that the investments make an annual return of 12 per cent per annum. Since you have an investment horizon of only five years, you can consider investing in a balanced scheme like HDFC Balanced Fund.

If you think it is an unrealistic goal, do not feel disheartened. Your relatively shorter investment horizon is the main reason why you have to invest such a large sum every month. If you had a very long-term goal, you may be able to achieve them by investing a small amount regularly over a long period.